Monday, January 01, 2007

American Express forecasts higher travel costs for 2007

Frankfurt ­ The credit card company American Express has estimated travelling for business people will becoming more expensive in the coming 12 months.

Costs will increase by between 3 and 7 per cent, according to the company's Global Business Travel Forecast. Hotel charges in most parts of the world are on course to increase by up to 8 per cent, according American Express' calculations.

In India, hotel charges are expected to grow by as much as 25 per cent due to strong demand that is out-stripping supply.

Hotel costs in Germany will likely rise by between 3 and 6 per cent while across Europe, the increase is expected to be between 2 and 3 per cent.

American Express puts the faster growth in charges in Germany down to the introduction of a higher rate of value-added tax due in January.